Statement by Secretary of the Treasury Janet L. Yellen on Commodity Futures Trading Commission’s (CFTC) Proposed Guidance on Voluntary Carbon Markets

The Secretary of the U.S. Department of the Treasury (USDT), Mrs. Janet L. Yellen, has released a statement in view of the issuance of a proposed Guidance on Listing Voluntary Carbon Credit (VCC) Derivative Contracts by the U.S. Commodity Futures Trading Commission (CFTC) (please see EventID 24175 in this context for more information).
To recall, the guidance outlines specific issues that Designated Contract Markets (DCMs) should consider when contemplating the listing of VCC derivative contracts on their platforms. The guidance aims to ensure that VCC contracts align with regulatory standards, promote standardization and transparency in such contracts, and enhance market liquidity while maintaining market integrity and stability.
In her statement now, Mrs. Yellen commends the CFTC on its work and notes the significance of the guidance towards „promoting the integrity of carbon credits and enabling greater liquidity, price discovery, and responsible product innovation for credits that underlie derivatives products listed on CFTC-registered exchanges“. In fact, it represents an important measure in advancing the climate and sustainable development goals of the U.S. government „while supporting technological innovation and economic growth“, so the Secretary.
The guidance comes just two months after the issuance of the Principles for Net-Zero Financing & Investment which includes a set of best practices or guidelines aimed at private sector financial institutions committed to achieving net-zero emissions (EventID 23043).